Ocado Group PLC faces a 12‑year low amid Kroger review uncertainty
Ocado Group PLC’s shares collapsed to the lowest level in more than a decade on 6 November 2025, reflecting growing investor anxiety over the pending outcome of a strategic review by its U.S. partner, Kroger Co. The fall left the stock trading at 197 GBX, barely above its 52‑week low of 189 GBX, and a distant 23 % from the recent high of 397.9 GBX reached in August.
The drop underscores a broader skepticism about Ocado’s valuation. With a price‑to‑earnings ratio of –4.96, the company is already trading on a negative earnings basis, suggesting that market participants doubt its ability to generate sustainable profits in the near term. The uncertainty surrounding Kroger’s future investment plans—whether the U.S. grocery giant will increase its stake, divest, or restructure the partnership—has amplified concerns that Ocado’s core robotics platform may not command the premium investors expect.
Strategic review: a double‑edged sword
Ocado’s business model hinges on its proprietary robotics‑enabled fulfillment centers, which deliver an end‑to‑end solution for online grocery services. The partnership with Kroger has been a critical source of revenue and market expansion. However, the review’s ambiguity threatens to disrupt this relationship. If Kroger were to pull back, Ocado would face a significant shortfall in both cash flow and market reach, while a potential sale of its broadcasting arm, as seen in the recent ITV-Sky talks, could distract management from focusing on core operations.
Market context
The FTSE 250 and FTSE 100 indices were already under pressure on the day, with broader technology and retail stocks experiencing sell‑offs. Investors’ appetite for risk‑laden tech plays had already cooled, and the emergence of a possible “AI bubble” debate added further strain. In such an environment, any sign of instability at a high‑profile tech‑enabled retailer like Ocado can trigger a sharp sell‑off.
Investor implications
The share price slide reflects a widening gap between Ocado’s market valuation and its fundamental performance metrics. With a negative P/E and a low price relative to its 12‑year high, the company is currently undervalued on a price‑to‑sales basis but overvalued on a profit basis. For long‑term investors, the key question is whether the strategic review will unlock additional value or expose deeper structural weaknesses in Ocado’s business model. Until the outcome is clear, the stock will likely remain volatile, serving as a cautionary tale for investors eager to capitalize on the growth of online grocery logistics.
